John Spencer originally opened the works in Newburn in 1822, in a water driven mill on the Dewley Burn which he converted for file grinding.
The works employed 1,500 people, and provided steel plates and springs, amongst other products, for the railway, shipping, armaments and mining industries all over the world.
The works closed in 1886, and in 1903 the Newcastle and District Electric Lighting Company erected Lemington Power Station on its site.
[5] In 1902 the Newcastle and District Electric Lighting Company extended its supply area to include Newburn.
The station generated electricity using waste heat in the form of steam available from the mill's reciprocating engines.